News: Under-construction house cancellation can help buyer get tax benefit-14-06-2019
Updated On: June 14, 2019
After three years of booking, it is considered as a long-term capital asset
When a buyer cancels a property in an under-construction project for tax purposes, the transaction is considered similar to selling a house. And, the tax treatment can benefit the buyer if he gives up the property after three years. In a recent case, a Mumbai-based lawyer bought three flats in a project, for which he paid Rs 50 lakh as advance.
The construction was delayed owing to regulatory hold-ups, due to which the buyer decided to surrender the flats. Apart from the booking amount, the developer paid the buyer an additional Rs 1.1 crore as compensation. As the buyer had ...
